Roubini: America still doesn't get it

Economist says country has yet to wake up to full extent of fiscal nightmare

Published: 01/03/2013 at 12:19 AM

(Business Insider) Last night the House of Representatives voted 257-167 to pass the fiscal cliff bill. Many have pointed out that president Obama has come out the winner, while the Republicans who signed Grover Norquist’s no-tax- increase pledge have been the biggest losers.

But in a new op-ed for The Financial Times, Nouriel Roubini writes that the U.S. has been let down by its leaders and that they “dysfunctional nature” of the country’s political system means another crisis isn’t far off.

He also says the country has yet to wake up to the “full extent of its fiscal nightmare”.

The next crisis according to Roubini could be just two months away, with spending cuts set to kick in at about the same time that the U.S. hits the debt ceiling. This is going to begin another “messy” debate between Democrats and Republicans.